South Dakota lawmakers are considering ways to make the state’s medical marijuana regulatory system clearer for businesses while maintaining safety standards as the program continues to expand.
The Legislature’s Medical Marijuana Oversight Committee met Monday at the state Capitol, receiving updates from the South Dakota Department of Health and hearing concerns from industry participants about inspections and financial penalties.
More than 19,000 people are currently enrolled in South Dakota’s medical marijuana program. State health officials have been expanding information available to patients and licensed businesses, while also moving toward offering medical marijuana identification cards digitally.
State Representative Josephine Garcia, a Republican who chairs the committee, said the department has responded to requests lawmakers made during the previous legislative session.
“The Department of Health has done a fabulous job and has brought forth the information we asked for last session,” Garcia said. “Public safety and access are a big thing; the people want this to be regulated, but they want access.”
Still, lawmakers heard concerns that the state’s enforcement process can be overly punitive when businesses make relatively minor or unintentional mistakes.
Garcia suggested allowing businesses to undergo practice inspections before formal reviews, giving cultivators and dispensaries a clearer understanding of state expectations.
“It would reduce the anxiety and also make it safe and get what we require done without this ‘gotcha,’” Garcia said.
Robert Krogstad, owner of Bad River Cannabis in Fort Pierre, told the committee that fines can create substantial financial pressure for smaller marijuana businesses. He pointed to a $3,000 penalty his company received, saying the expense forced the business to postpone other work.
The committee also discussed marijuana’s recent move from Schedule I to Schedule III under federal law and what the change could eventually mean for South Dakota’s medical program.
For now, lawmakers were told that significant questions remain, particularly regarding federal tax treatment and interstate commerce. Without additional federal guidance, state officials have limited information on which to base potential legislative changes.
The committee is expected to meet again in October. Garcia said lawmakers hope South Dakota Attorney General Marty Jackley will participate in that meeting to discuss legal issues surrounding the medical marijuana program and its future.
